Garowe (PP News Desk) — In response to calls to rein in inflation in Puntland, Hassan Shire Abdi, the Puntland State Finance Minister, proposed a theory about the comparatively higher exchange rate in Puntland.
“We have seized a large amount of money from Southern regions, where 2,500, 000 million shillings buys one hundred dollars, bound for Puntland where 4,000, 000 shillings buys one hundred dollars” said the Minister.
Mr Hassan has not explained the motivation of money changers to buy or sell dollars in a part of Somalia where the exchange rate is higher. Some preople have criticised Puntland Finance Minister for economic illiteracy.
A Puntland Post reporter visited the currency exchange market in Garowe one hour ago. “Somali shilling from South and South-central is not used in Puntland. Only Somali shilling printed by the former Puntland administration of Dr Abdiweli M. Ali is in circulation. Importers are seeking dollars” said one money changer in Garowe.
“Puntland State does not understand the source of the inflation” says a Bosaso-based economist. Puntland Traders have resorted to a price hike to offset the higher exchange rate with which Puntland Finance Ministry is unable to deal.
Puntland Finance Minister said his Ministry was consulting experts about the run-away inflation in Puntland. Last week, an influential Sheikh in Garowe called for Puntland State Government to devise policies to deal with higher cost of living caused by an exchange rate-driven inflation.
© Puntland Post, 2020